🏛️ 1. Reserve Bank of India (RBI) — Introduction & History
📌 What is Banking?
Banking = एक financial activity जिसमें individuals, businesses और governments को money manage करने और financial services provide करने का काम होता है।
Core Activities: Deposits accept करना + Loans देना + Transactions facilitate करना।
🏦 RBI — "Father of All Banks"
RBI = India का Central Bank। यह पूरे banking system को manage, control और regulate करती है। इसीलिए इसे "Father of All Banks" या "Bank of Banks" कहते हैं।
📅 RBI का Timeline:
1926
Hilton Young Commission ने RBI establish करने की recommendation दी।
1934
Reserve Bank of India Act, 1934 pass हुआ — RBI officially established।
1935
Operations शुरू हुई — 1st April 1935, Calcutta में।
1937
Headquarters Calcutta से Mumbai permanently move किया गया।
1949
RBI Nationalized on 1st January 1949 — Reserve Bank of India (Transfer to Public Ownership) Act, 1948 के तहत। Government ने private players से full ownership ले ली।
👑 Key Leadership & Symbols
- First Governor: Sir Osborne Smith
- First Indian Governor: Sir C.D. Deshmukh
- Current Governor (2026): Sanjay Malhotra
- Logo: Tiger and a Palm Tree 🐯🌴
RBI वही है जो commercial banks (SBI, HDFC, etc.) को regulate करती है — जैसे CBSE schools को regulate करती है। आम आदमी directly RBI से deal नहीं करता — हम banks से deal करते हैं, banks RBI से।
Hilton Young Commission 1926 → RBI Act 1934 → Operations 1 April 1935 → HQ Mumbai 1937 → Nationalized 1 Jan 1949। यह sequence बहुत important है।
⚙️ 2. Functions of RBI
1️⃣ Regulator of Banks — "Bank of Banks"
Authority: Banking Regulation Act, 1949 के तहत banking system regulate करती है।
- Banking companies को licenses grant करती है।
- CRR और SLR regulate करती है।
- Banks specific criteria meet करें तभी operate करें — यह ensure करती है।
Scheduled Banks: वो banks जो RBI Act, 1934 की Second Schedule में listed हैं।
2️⃣ Monetary Authority
Inflation control करने, money supply manage करने और credit flow ensure करने के लिए monetary policy formulate और implement करती है।
Tools: Repo Rate, CRR, SLR, OMO, etc.
3️⃣ Currency Printing & Management
RBI India में currency print और manage करती है।
⚠️ Exception: ₹1 note और सभी Coins = Ministry of Finance (Government of India) issue करती है — RBI नहीं।
🖨️ Note Printing Press (4 Locations):
- Nasik (Maharashtra)
- Dewas (Madhya Pradesh)
- Mysore (Karnataka)
- Salboni (West Bengal)
🪙 Coin Minting (4 Locations):
- Mumbai
- Hyderabad
- Kolkata (Calcutta)
- Noida
🔍 Coin पर Mint कहाँ था — कैसे पहचानें?
Coin पर साल के नीचे छोटा mark देखें:
💎Diamond
Mumbai में Minted
⭐Star
Hyderabad में Minted
—No Mark
Kolkata में Minted
4️⃣ Publication of Reports
Financial Stability Report (FSR): Biannual (June और December — साल में 2 बार)। Purpose: Financial system के risks assess करना।
Handbook of Statistics on the Indian Economy: Annually (साल में 1 बार)। Purpose: Indian economy के comprehensive data और statistics।
5️⃣ Lender of Last Resort (अंतिम ऋणदाता)
Financial crisis में जब commercial banks कहीं से loan नहीं पा सकतीं, तो RBI last resort के रूप में funding provide करती है।
Public (individuals) directly RBI से account open नहीं कर सकता, और न directly borrow कर सकता है। हम Banks से deal करते हैं — Banks RBI से deal करती हैं।
📄 Clean Note Policy — 1999
- Introduction: RBI ने 1999 में introduce किया।
- Objective: Banks soiled (गंदे), torn (फटे) या scribbled (लिखे हुए) notes customers को pass नहीं करेंगी — इन्हें RBI को वापस deposit करना होगा।
- Legal Basis: Section 35A of the Banking Regulation Act, 1949।
₹1 Note + सभी Coins = Ministry of Finance। बाकी सभी Notes = RBI। Clean Note Policy 1999। FSR = Biannual (June+Dec)।
🗂️ 3. Classification of Banking System in India (RBI Act 1934)
✅ Scheduled Banks
RBI Act, 1934 की
Second Schedule में listed।
CRR maintain करना mandatory।
RBI की facilities (Repo Rate, etc.) use कर सकती हैं।
Types:
→ Commercial Banks (Profit Motive)
→ Cooperative Banks (Service Motive)
→ Local Area Banks
❌ Non-Scheduled Banks
Second Schedule में listed नहीं।
Small/local banks जो RBI की criteria meet नहीं करतीं।
ये बहुत rare हैं।
Commercial Banks (Profit Motive) के 4 Types:
| Type | Ownership | Examples |
|---|
| Public Sector Banks | Govt. owned (majority stake) | SBI, PNB, BOB (12 total) |
| Private Sector Banks | Indian owned, private | HDFC, ICICI, Axis, Kotak Mahindra |
| Foreign Banks | Foreign owned | Citi Bank, HSBC, Standard Chartered |
| Regional Rural Banks (RRBs) | Jointly owned (Govt+Bank+State) | Prathama Bank |
Cooperative Banks (Service Motive) के 2 Types:
Urban Cooperative Banks
Urban areas में — service motive + some profit
Rural Cooperative Banks
Rural areas में — farmers, rural workers
12 Public Sector Banks हैं currently। SBI India की largest bank है। Cooperative Banks का motive = Service (profit नहीं)।
📜 4. Evolution & History of Indian Banking
India की banking history colonial era से आज तक — "Class Banking" से "Mass Banking" का सफर।
🥇 First Banks of India
- First Bank in India: Bank of Hindustan — 1770, Calcutta में।
- First Indian-Owned Bank: Allahabad Bank — 1865।
🏦 SBI की Journey — Presidency Banks से State Bank तक:
| Year | Event | Details |
|---|
| 1806 | Bank of Calcutta | First Presidency Bank (British established) |
| 1840 | Bank of Bombay | Second Presidency Bank |
| 1843 | Bank of Madras | Third Presidency Bank |
| 1921 | Imperial Bank of India | तीनों Presidency Banks merge होकर एक entity बनी |
| 1955 | State Bank of India (SBI) | Imperial Bank nationalized और renamed — national development के लिए |
3 Presidency Banks → 1921 Imperial Bank → 1955 SBI। यह sequence बहुत important है।
🏛️ 5. Nationalization of Banks (1969 & 1980)
📌 Why Nationalization?
Commercial banks cities और trade hubs (Gujarat, Maharashtra) में concentrate थीं — "Class Banking"। Rural areas और गरीब लोगों तक banking नहीं पहुँच रही थी।
Government ने private banks का ownership लेकर rural areas तक banking पहुँचाने के लिए nationalization की — "Mass Banking" की तरफ।
🔴 Phase I — 1969
PM: Indira Gandhi
Action: 14 Major Banks nationalized
Criteria: ₹50 Crore से ज़्यादा deposits
Legislation: Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969
🟠 Phase II — 1980
PM: Indira Gandhi
Action: 6 Additional Banks nationalized
Criteria: ₹200 Crore से ज़्यादा deposits
6 Banks: Andhra, Corporation, New Bank of India (PNB में merged 1993), OBC, Punjab & Sind, Vijaya Bank
Nationalization vs. Consolidation (Merger)
Nationalization:
Government private banks की ownership ले लेती है। (1969, 1980)
Consolidation (Merger):
Multiple banks को merge करके fewer, larger, globally competitive banks बनाना।
🏦 Narasimham Committee — Banking Reforms
- 1991 Committee: CRR/SLR कम करने की recommendation। Mandatory government investment requirements हटाने की recommendation।
- 1998 Committee: Strong banks को merge करके "Global Sized Banks" create करने की recommendation।
2019-2021 में India ने 10 Public Sector Banks को merge करके 4 बड़े banks बनाए — यही Consolidation है। जैसे Vijaya Bank + Dena Bank → Bank of Baroda। Narasimham Committee 1998 की same recommendation थी।
Phase I 1969 = 14 Banks, ₹50 Cr criteria। Phase II 1980 = 6 Banks, ₹200 Cr criteria। दोनों PM = Indira Gandhi।
💼 6. Functions of Commercial Banks
📦 A. Primary Functions
1. Accepting Deposits (Liability):
Bank customer का पैसा owe करती है — Liability।
→ Demand Deposits: Savings, Current (anytime withdrawal)
→ Time Deposits: FD, RD (fixed tenure)
2. Advancing Loans (Asset):
Loans interest generate करते हैं — Asset।
🛠️ B. Secondary Functions
1. Overdraft Facility:
Account balance से ज़्यादा withdraw करने की permission। Credit score based short-term loan।
2. Agency Functions:
→ Fund Transfer
→ Tax Collection (Govt. की तरफ से)
3. General Utility Functions:
→ Locker Facility (stolen हो तो bank compensate करेगी)
→ Financial guarantees, info
🌾 7. Regional Rural Banks (RRBs)
📌 Purpose
Commercial banks cities में थीं — rural areas, farmers, और weaker sections ignore होते थे। RRBs rural areas में credit और banking services provide करने के लिए बनाए गए।
📋 Establishment Facts
- First RRB: Pratham Grameen Bank
- Date: 2nd October 1975 (Gandhi Jayanti)
- Location: Moradabad, Uttar Pradesh
- Act: RRB Act, 1976 के तहत formally established
- Kelkar Committee: New RRBs खोलना बंद करने की recommendation दी — viability पर focus करने के लिए।
🏦 RRB Ownership Structure (50-35-15):
Central Government
50%
Largest stakeholder — govt. backing
Sponsor Bank
35%
Commercial Bank (SBI, HDFC) — technical & financial support
State Government
15%
State जहाँ RRB operate करती है
🔍 Regulation vs. Supervision
- Regulator: RBI (Reserve Bank of India) — guidelines और rules।
- Supervisor: NABARD — inspect और oversee करता है।
First RRB = Pratham Grameen Bank। Date = 2 Oct 1975। Ownership = 50:35:15 (Centre:Sponsor Bank:State)। Regulator = RBI। Supervisor = NABARD।
🏦 8. Important Financial Institutions (IFIs)
🌾 NABARD — National Bank for Agriculture and Rural Development
- Established: 12 July 1982
- Committee: B. Sivaraman Committee (1979) की recommendation पर।
- Act: NABARD Act, 1981
- HQ: Mumbai
Key Functions:
- Rural Credit: Agriculture और rural development को loans।
- Supervision: Cooperative Banks और RRBs को oversee करता है।
- Refinancing: Directly public को नहीं — Banks (RRBs) को funding देता है।
Schemes:
- SHG-Bank Linkage Program (1992): Self Help Groups को banks से link करना।
- E-Shakti & LEDP (2015): SHGs का digitization।
- PMAY, KCC (Kisan Credit Cards), RuPay Kisan Cards facilitate करता है।
📊 Other Important Financial Institutions:
| Institution | Year | HQ | Main Objective |
|---|
SEBI
Securities & Exchange Board of India |
Est. 12 April 1988
Statutory status: SEBI Act 1992 |
Mumbai
Tuhin Kanta Pandey |
Securities market में investors के interests protect करना |
SIDBI
Small Industries Development Bank |
2 April 1990 |
Lucknow
Manoj Mittal |
MSMEs को financial और developmental assistance |
NHB
National Housing Bank |
1988 (Act of 1987) |
New Delhi
Sanjay Shukla |
Housing finance sector को regulate और promote करना |
IRDAI
Insurance Regulatory & Development Authority |
April 2000 (IRDAI Act 1999) |
Hyderabad
Ajay Seth |
Insurance sector regulate करना + policyholders protect करना |
IDBI
Industrial Development Bank of India |
1964 (RBI subsidiary as origin)
LIC ने 51% stake acquire किया |
Mumbai
T.N. Manoharan (Chairman) |
Industries के development के लिए loans और financial facilities |
NAFED
National Agricultural Cooperative Marketing Federation |
2 October 1958 |
New Delhi
Jethabhai Ahir |
Agricultural produce के लिए apex marketing cooperative organization |
SEBI = Stock market regulator, Mumbai। IRDAI = Insurance regulator, Hyderabad। NABARD = Rural banking supervisor, Mumbai। SIDBI = MSME finance, Lucknow।
🤝 9. Microfinance Institutions (MFIs), SHGs & JLGs
📌 Microfinance — क्या है?
MFIs = Low-income population को micro-loans, credit, savings, insurance और remittances provide करती हैं।
Eligibility: Annual income ₹3 lakh तक के households को बिना collateral loans।
📜 Important Facts
- Father of Microfinance: Muhammad Yunus — 2006 Nobel Peace Prize (Bangladesh Grameen Bank)।
- First MFI in India: SEWA Bank (Self Employed Women's Association) — 1974, Ahmedabad।
👩👩👧 Self Help Groups (SHG)
- Structure: 10-20 लोग — BPL (Below Poverty Line), rural areas
- Living conditions improve करने के लिए साथ आते हैं।
- Loans: Members को बिना collateral + low interest (informal sector / moneylenders से कम)।
- Impact: Women और marginalized groups को self-reliant बनाते हैं।
🤝 Joint Liability Groups (JLG)
- Structure: 4-10 लोग — bank loan लेने के लिए।
- Collateral-free Loan: Group मिलकर loan लेती है — बिना security।
- Target: Individuals, sharecroppers, tenant farmers, small & marginal farmers।
- Group members एक-दूसरे के loan के लिए jointly liable होते हैं।
गाँव की 15 महिलाएं मिलकर SHG बनाती हैं। हर महीने ₹500 जोड़ती हैं। जिसे ज़रूरत हो उसे group से loan मिलता है — bank से नहीं। NABARD इन्हें banks से link करता है (SHG-Bank Linkage Program)।
SHG = 10-20 members, BPL। JLG = 4-10 members, farmers। SEWA = First MFI India 1974। Muhammad Yunus = Father of Microfinance, Nobel 2006।
🏢 10. Non-Banking Financial Companies (NBFCs)
📌 Definition
NBFCs = वो financial institutions जो banking services provide करती हैं लेकिन banking license नहीं होती।
Registration: Companies Act, 1956 के तहत।
Regulation: RBI Act, 1934 के तहत RBI regulate करती है।
❌ NBFC क्या नहीं कर सकती
→ Demand deposits (Savings/Current) accept नहीं कर सकती
→ Cheques issue नहीं कर सकती
→ Payment & Settlement System का हिस्सा नहीं
→ CRR/SLR maintain करना mandatory नहीं
→ DICGC insurance नहीं — deposits at risk
✅ NBFC क्या कर सकती है
→ Gold loans provide कर सकती है
→ Vehicle/asset finance कर सकती है
→ Consumer loans दे सकती है
→ Term deposits accept कर सकती है
→ Insurance, investment services
📊 NBFC Examples by Specialization:
| Specialization | Examples |
|---|
| Gold Loans | Muthoot Finance, Manappuram Finance |
| Asset/Vehicle Finance | Shriram Finance, Mahindra Finance |
| Consumer/Personal Finance | Bajaj Finance, Tata Capital |
| Infrastructure Finance | Power Finance Corporation (PFC), REC Limited |
Capital Requirements Comparison
| Entity | Min. Capital | Key Fact |
|---|
| Scheduled Commercial Bank | ₹500 Crore | Part of Payment & Settlement System |
| Payments Bank | ₹100 Crore | Cannot issue loans or credit cards |
| NBFC-MFI (Pan India) | ₹5 Crore (NOF) | Malegam Committee 2010 basis |
| NBFC-MFI (North-East) | ₹2 Crore (NOF) | Financial inclusion encourage करने के लिए |
📋 NBFC-MFI — Special Notes
- Established based on: Malegam Committee (2010) recommendations।
- NBFC-MFI License के लिए: 60% qualifying microfinance loans hold करनी होंगी (excluding intangible assets)। Previously 75% था (2022 revision में 85% से घटाया)।
- Regulation: RBI के under registered और regulated।
💳 Payment and Settlement Systems Act, 2007
UPI, NEFT, RTGS, Credit Cards जैसे सभी payment systems को RBI इस Act के तहत regulate करती है।
यह Act RBI को legal authority देता है — किसी भी payment system को supervise और oversee करने की।
NBFCs Payment and Settlement System का part नहीं हैं।
NBFCs = Banking services but no banking license। No demand deposits, No cheques, No CRR/SLR mandatory। NBFC-MFI = 60% qualifying loans। PSS Act 2007 = All digital payments regulated by RBI।
🎯 11. Priority Sector Lending (PSL) + UCBs + MUDRA
📌 Priority Sector Lending (PSL)
RBI banks को mandate करती है कि अपनी lending का एक specific portion priority sectors (agriculture, small businesses, education, housing, weaker sections) को दें।
PSL Targets:
Commercial Banks (Domestic >20 branches)
Foreign Banks (<20 branches)
RRBs & Small Finance Banks (SFBs)
📊 PSL Sub-targets & Non-Achievement
- Agriculture: Total PSL का 18%।
- Weaker Sections (SC, ST, Women): 12%।
- Non-Achievement Penalty: Shortfall को Rural Infrastructure Development Fund (RIDF) में deposit करना — NABARD manage करता है।
- NBFCs: PSL targets mandatory नहीं।
🏙️ Urban Cooperative Banks (UCBs) — Dual Regulation
UCBs दो regulatory bodies के under काम करती हैं:
- RBI: Banking functions, prudential norms, monetary policy।
- Registrar of Cooperative Societies (RCS): Incorporation, management, elections, audit।
💰 Pradhan Mantri Mudra Yojana (PMMY) — 8 April 2015
Small businesses को micro-credit/loans provide करके financial inclusion promote करना।
🐣 Shishu
Loans up to ₹50,000
📈 Kishor
₹50,000 – ₹5 Lakh
🚀 Tarun
₹5 Lakh – ₹10 Lakh
⭐ Tarun Plus
₹10 Lakh – ₹20 Lakh
🏭 MUDRA (Micro Units Development & Refinance Agency Ltd.)
- Launched: 8 April 2015
- Funding: 100% SIDBI (Small Industries Development Bank of India) से।
- PMMY के loans MUDRA के through provide होते हैं।
PSL = 40% ANBC for Commercial Banks। RRBs/SFBs = 75%। Agriculture sub-target = 18%। MUDRA launched 8 April 2015। PMMY = Shishu (₹50K) → Kishor (₹5L) → Tarun (₹10L) → Tarun Plus (₹20L)।
⚡ Quick Revision — सभी Key Facts एक नज़र में
| Topic | Key Fact |
|---|
| RBI — "Father of All Banks" | Central Bank, manages entire banking system |
| Hilton Young Commission | 1926 — RBI establishment recommend किया |
| RBI Act | 1934 |
| RBI Operations Start | 1 April 1935, Calcutta |
| RBI HQ Shift | 1937, Calcutta → Mumbai |
| RBI Nationalization | 1 January 1949 (Transfer to Public Ownership Act, 1948) |
| First RBI Governor | Sir Osborne Smith |
| First Indian RBI Governor | Sir C.D. Deshmukh |
| Current RBI Governor (2026) | Sanjay Malhotra |
| RBI Logo | Tiger + Palm Tree 🐯🌴 |
| Banking Regulation Act | 1949 — RBI regulates banks under this |
| ₹1 Note + All Coins issued by | Ministry of Finance (Not RBI) |
| Note Printing Presses | Nasik, Dewas, Mysore, Salboni (4) |
| Coin Minting Locations | Mumbai, Hyderabad, Kolkata, Noida (4) |
| Mumbai Mint Mark | 💎 Diamond |
| Hyderabad Mint Mark | ⭐ Star |
| Kolkata Mint Mark | No mark |
| Noida Mint Mark | ● Dot |
| FSR Published | Biannually — June & December |
| Clean Note Policy | 1999 — Section 35A of Banking Regulation Act |
| Scheduled Banks listed in | Second Schedule of RBI Act 1934 |
| Public Sector Banks (currently) | 12 banks |
| First Bank in India | Bank of Hindustan — 1770, Calcutta |
| First Indian-Owned Bank | Allahabad Bank — 1865 |
| 3 Presidency Banks → Imperial Bank | 1921 (Bank of Calcutta 1806, Bombay 1840, Madras 1843) |
| SBI Formed | 1955 — Imperial Bank renamed/nationalized |
| Nationalization Phase I | 1969 — 14 Banks — ₹50 Cr criteria — PM Indira Gandhi |
| Nationalization Phase II | 1980 — 6 Banks — ₹200 Cr criteria — PM Indira Gandhi |
| Narasimham Committee 1991 | CRR/SLR reduce करने की recommendation |
| Narasimham Committee 1998 | Global Sized Banks बनाने की recommendation |
| First RRB | Pratham Grameen Bank — 2 October 1975, Moradabad, UP |
| RRB Act | 1976 |
| RRB Ownership | 50% Centre + 35% Sponsor Bank + 15% State Govt. |
| RRB Regulator | RBI |
| RRB Supervisor | NABARD |
| NABARD Established | 12 July 1982 — B. Sivaraman Committee (1979) |
| NABARD Act | 1981 |
| NABARD HQ | Mumbai |
| SHG-Bank Linkage Program | 1992 — NABARD launched |
| SEBI Statutory Status | SEBI Act 1992, Mumbai, Securities market regulator |
| IRDAI HQ | Hyderabad — Insurance regulator |
| SIDBI HQ | Lucknow — MSME finance |
| NAFED Founded | 2 October 1958, New Delhi |
| Father of Microfinance | Muhammad Yunus — Nobel Peace 2006 |
| First MFI India | SEWA Bank — 1974, Ahmedabad |
| SHG Members | 10-20 (BPL, rural) |
| JLG Members | 4-10 (farmers, sharecroppers) |
| NBFC Cannot | No demand deposits, No cheques, No Payment & Settlement |
| NBFC-MFI Basis | Malegam Committee 2010 |
| NBFC-MFI License Condition | 60% qualifying microfinance loans |
| PSS Act | 2007 — RBI regulates UPI, NEFT, RTGS, Credit Cards |
| PSL Target — Commercial Banks | 40% of ANBC |
| PSL Target — RRBs/SFBs | 75% of ANBC |
| PSL Agriculture Sub-target | 18% |
| PSL Non-achievement → Deposit to | RIDF (Rural Infrastructure Development Fund) — NABARD |
| PMMY Launched | 8 April 2015 |
| MUDRA Funded by | 100% SIDBI |
| Shishu Loans | Up to ₹50,000 |
| Kishor Loans | ₹50,000 – ₹5 Lakh |
| Tarun Loans | ₹5 Lakh – ₹10 Lakh |
| Tarun Plus Loans | ₹10 Lakh – ₹20 Lakh |
| UCB Dual Regulation | RBI + Registrar of Cooperative Societies (RCS) |